Professor Roger Hallowell of Harvard Business School; David Bowen, Dean, Faculty and Programs, and Professor, Thunderbird, The AmericanGraduate School of International Management; and Carin-Isabel Knoop, Executive Director, Global Research Group (HBS) prepared this case.HBS cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, orillustrations of effective or ineffective management.
Four Seasons Goes to Paris:“53 Properties, 24 Countries, 1 Philosophy”
Europe is different from North America, and Paris is very different. I did not say difficult. I said different.
— A senior Four Seasons manager
In 2002, Four Seasons Hotels and Resorts was arguably the world’s leading operator of luxuryhotels, managing 53 properties in 24 countries and delivering what observers called “consistentlyexceptional service.” For Four Seasons, that meant providing high-quality, truly personalized serviceto enable guests to maximize the value of their time, however the guest defined doing so.
In 1999, Four Seasons opened the Four Seasons Hotel George V Paris (hereafter, “F. S. George V”),its first French property, by renovating and operating the Hotel George V, a historic Parisianlandmark. Doing so was, according to John Young, executive vice president, human resources, “oneof our great challenges and triumphs.” Young mused on what Four Seasons had learned fromopening a hotel in France, wondering what lessons would be applicable to other openings given thefirm’s growth plans, which suggested that new opportunities would be largely outside NorthAmerica. (Exhibit 1 illustrates property locations in 2002.)
Performance
Four Seasons generally operated (as opposed to owned) midsized luxury hotels and resorts. From1996 through 2000 (inclusive), Four Seasons revenues increased at a compound rate of 22.6% per year.Operating margins increased from 58.8% to 67.9% during the same period. Four Seasons’ 2001revenue per room (RevPAR) was 32% higher than that of its primary U.S. competitors and 27%higher than that of its European competitors. (Exhibit 2 provides summary financials.)
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Management Structure and Team
Structure A general manager responsible for supervising the day-to-day operations of a singleproperty oversaw each Four Seasons property. General managers had a target bonus of 30% of basecompensation. A quarter of the bonus was based on people measures (employee attitudes), 25% onproduct (service quality), and 50% on property profit. Four Seasons management believed that thefirm’s regional management structure was “a key component” of its ability to deliver and maintainthe highest and most consistent service standards at each property in a cost-effective manner.Exhibit 3 describes this structure.
Italian in Italy, French in France The firm’s top managers were comfortable in a variety ofinternational settings. Antoine Corinthios, president, Europe, Middle East, and Africa, for example,was said to be “Italian in Italy, French in France.” Born and educated in Cairo, Corinthios spent 20years in Chicago, but described himself as a world citizen. He was the cultural chameleon he wantedFour Seasons hotels to be. “If you are going global you cannot be one way,” he explained.
No bragging, no excuses Modesty, compassion, and discipline were also important. Amanager who stayed on with Four Seasons described the Four Seasons due diligence team that cameto the property as “very professional and not pretentious; detail oriented; and interested in people.They did not come telling me that all I did was wrong,” he remembered, “and showed a lot ofcompassion.” Excuses were not tolerated at Four Seasons: “Oh, but we have just been open a year” or“The people here do not understand” were not acceptable statements. Customer service extended toall levels in the organization: managers routinely helped clear restaurant tables in passing.
Strong allegiance to the firm Four Seasons’ top management team was noted for itslongevity, many having been at the firm for over 25 years. Both corporate and field managers oftenreferred to the firm as a “family,” complete with rules, traditions, and tough love. There was a strong“one firm sentiment.” For example, as one general manager explained, “We are happy to let stars goto other properties to help them.”
Four Seasons’ Approach to International Growth
Today, we have opened enough properties overseas that we can go into any city or town and pull peopletogether to fulfill our mission.
— Isadore Sharp, founder and CEO
Diversity and Singularity
According to Corinthios, “Our strength is our diversity and our singularity. While the essence ofthe local culture may vary, the process for opening and operating a hotel is the same everywhere.”He continued:
My goal is to provide an international hotel to the business or luxury leisure travelerlooking for comfort and service. The trick is to take it a couple of notches up, or sideways, toadapt to the market you are in. Our standards are universal, for example, getting your messageon time, clean room, good breakfast; being cared for by an engaging, anticipating, andresponding staff; being able to treat yourself to an exciting and innovative meal—these areglobal. This is the fundamental value. What changes is that people do it with their own style,grace, and personality; in some cultures you add the strong local temperament. For example,
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an Italian concierge has his own style and flair. In Turkey or Egypt you experience differenthospitality.
As a result, “each hotel is tailor made” and adapted to its national environment, noted David Crowl,vice president sales and marketing, Europe, Middle East, and Africa:
Sharp once told me that one of our key strengths is diversity. McDonald’s is the same allover. We do not want to be that way. We are not a cookie-cutter company. We try to make eachproperty represent its location. In the rooms, we have 40 to 50 square meters to create acultural destination without being offensive. When you wake up in our Istanbul hotel, youknow that you are in Turkey. People know that they will get 24-hour room service, a custom-made mattress, and a marble bathroom, but they also know that they are going to be part of alocal community.
David Richey, president of Richey International, a firm hired by Four Seasons and other hotelchains to audit service quality, believed that “Four Seasons has done an exceptional job adapting tolocal markets. From a design perspective they are much more clever than other companies. When yousit in the Four Seasons in Bali, you feel that you are in Bali. It does not scream ‘Four Seasons’ at you.”
A manager explained Four Seasons’ ability to be somewhat of a cultural chameleon with ananalogy to Disney: “Unlike Disney, whose brand name is so strongly associated with the UnitedStates, Four Seasons’ brand doesn’t rigidly define what the product is. The Four Seasons brand isassociated with intangibles. Our guests are not looking to stay in a Canadian hotel.” In general, FourSeasons managers were wary of being perceived as an “American” company. They found it useful inEurope to position Four Seasons as the Canadian company it was.
According to Crowl, Four Seasons learned from each country and property: “Because we are aninternational hotel company, we take our learning across borders. At our new property in Egypt, weare going to try to incorporate indigenous elements to the spa, but we will still be influenced by thebest practices we have identified at our two spas in Bali.”
Globally Uniform Standards
The seven Four Seasons “service culture standards” expected of all staff all over the world at alltimes are described in Exhibit 4. In addition, Four Seasons had 270 core worldwide operatingstandards (see Exhibit 5 for sample standards). Arriving at these standards had not been easy: until1998 there were 800. With the firm’s international growth, this resulted in an overly complex set ofrules and exceptions. The standards were set by the firm’s senior vice presidents and Wolf Hengst,president, Worldwide Hotel Operations, who explained: “We had a rule about the number ofdifferent types of bread rolls to be served at dinner and number of varieties of wine to be offered atlounges. In countries where no bread is eaten at dinner and no wine consumed, that’s pretty stupid.”
Exceptions to the 270 standards were permitted if they made local sense. For example, onestandard stated that the coffee pot should be left on the table at breakfast so that guests could chooseto refill their cup. This was perceived as a lack of service in France, so it was amended there.Standards were often written to allow local flexibility. While the standards required an employee’suniform to be immaculate, they did not state what it should look like. In Bali, uniforms werecompletely different from uniforms in Chicago. Managers emphasized that standards set minimumexpectations: “If you can do something for a client that goes beyond a standard,” they told staff, “doit.” As a result, stories about a concierge bringing a client to the hospital and staying with that personovernight were part of Four Seasons lore.
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To evaluate each property’s performance against the standards, Four Seasons used both externaland internal auditors. “Our standards are the foundation for all our properties,” a senior managernoted. “It is the base on which we build.” “When you talk to a Four Seasons person,” Richeyconcluded, “they are so familiar with each of the standards, it is astonishing. With many managers atother firms, this isn’t the case.”
“We have been obsessed by the service standards,” Hengst noted. “People who come from theoutside are surprised that we take them and the role they play in our culture so seriously. But theyare essential: talk to me about standards and you talk to me about religion.” Another manageradded, “Over time, the standards help to shape relationships between people, and those relationshipscontribute to building our culture.”
Delivering “Intelligent, Anticipatory, and Enthusiastic Service” Worldwide
A manager stated: “We decided many years ago that our distinguishing edge would beexceptional, personal service—that’s where the value is. In all our research around the world, wehave never seen anything that led us to believe that ‘just for you’ customized service was not themost important element of our success.” Another manager added, “Service like this—what I think ofas ‘intelligent service’—can’t be scripted. As a result, we need employees who are as distinguished asour guests. If employees are going to adapt, to be empathetic and anticipate guest needs, the‘distance’ between the employee and the guest has to be small.”
There were also tangible elements to Four Seasons’ service quality. The product was alwayscomfortable—so much so that at guests’ requests, the company made its pillows, bedspreads, andmattresses available for sale. “However, there are differences in the perception and definition ofluxury,” explained Barbara Talbott, executive vice president of marketing. “In the United States, ourproperties have public spaces with a luxurious, but intimate, feeling. In the Far East, our propertieshave large lobbies enabling guests to see and be seen. People around the world also have differentways of using a hotel—restaurants, for example, are more important in hotels in Asia, so we buildspace for more restaurants in each property there.”
Human Resources and “The Golden Rule”
Human resource management at Four Seasons started and ended with “The Golden Rule,” whichstipulated that one should treat others as one would wish to be treated. “The Golden Rule is the keyto the success of the firm,” founder and CEO Sharp emphasized, “and it’s appreciated in everyvillage, town, and city around the world. Basic human needs are the same everywhere.” KathleenTaylor, president, Worldwide Business Operations, provided an example of how Four Seasonsimplemented the Golden Rule: “We give employees several uniforms so they can change when theybecame dirty. That goes to their dignity, but it is uncommon in the hospitality industry. Peoplearound the world want to be treated with dignity and respect, and in most organizational culturesthat doesn’t happen.” (Exhibit 6 summarizes the firm’s goals, beliefs, and principles.)
Managers acknowledged that many service organizations made similar statements on paper. Theybelieved that what differentiated Four Seasons was how the chain operationalized those statements.Crowl noted: “A service culture is about putting what we all believe in into practice. We learn it, wenurture it, and most important, we do it.” “People make the strength of this company,” a seniormanager stated. “Procedures are not very varied or special. What we do is fairly basic.”
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In 2002, for the fifth year in a row, Four Seasons was on Fortune magazine’s list of the top 100 bestcompanies to work for in North America. Four Seasons’ turnover was half that of the hospitalityindustry average of 55%.
Going to Paris
Despite the success of Four Seasons’ approach and philosophy, management knew that enteringFrance would be a challenge.
The George V Opportunity
The six hotels in Paris classified as “Palaces” were grand, historic, and luxurious. Standard roomprices at the F. S. George V, for example, ranged from $400 to $700. Most palaces featured award-winning restaurants, private gardens, and expansive common areas. The nine-story George V wasdesigned in the 1920s by two famous French art déco architects. (Exhibit 7 provides comparative dataon Parisian palaces.)
Observers of the Paris hotel scene noted that by the 1980s and 1990s, the George V, like some of itspeers, was coasting on its reputation. In December 1996, H.R.H. Prince Al Waleed Bin Talal BinAbdulaziz al Saud purchased the hotel for $170 million. In November 1997, Four Seasons agreed tomanage the hotel. “We needed to be in Paris,” Young explained. “We had looked at a newdevelopment, but gaining planning permission for a new building in Paris is very hard. Since we lookfor the highest possible quality assets in the best locations, the George V was perfect. It established usvery powerfully in the French capital.”
Physical Renovations
Four Seasons’ challenge was to preserve the soul of the legendary, almost mythical George VHotel while rebuilding it for contemporary travelers. Four Seasons closed the hotel for what endedup being a two-year, $125 million total renovation. Since the building was a landmark, the façade hadto be maintained. The interior of the hotel, however, was gutted. Skilled craftsmen restored thefaçade’s art déco windows and balconies, extensive wood paneling, gilding, artwork, and 17th-century Flanders tapestries that had long adorned the hotel’s public and private spaces.
The interior designer hired by Four Seasons, Pierre-Yves Rochon, noted: “I would like guests re-discovering the hotel to think that I had not changed a thing—and, at the same time, to notice howmuch better they feel within its walls.”1 The fact that the designer was French, Barbara Talbottpointed out, “signaled to the French that we understood what they meant by luxury.”
While Four Seasons built to American safety standards, it also had to adhere to local laws, whichaffected design and work patterns. For example, a French hygiene law stipulated that food and trashbe carried down different corridors and up and down different elevators. Another law involved the“right to light”: employees had the right to work near a window for a certain number of hours eachday. As a result, employees in the basement spa also worked upstairs in a shop with a window forseveral hours a day, and as many windows as possible had to be programmed into the design.
The new Four Seasons Hotel George V Paris opened on December 18, 1999, at 100% effectiveoccupancy (occupancy of rooms ready for use). The opening was particularly challenging becauseFour Seasons only took formal control of operations on December 1, in part due to French
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regulations. “The French are very particular about, for example, fire regulations, but the firedepartment would not come in and inspect until everything else was complete,” a manager said.
Becoming a French Employer
Entering the French hospitality market meant becoming a French employer, which impliedunderstanding French labor laws, business culture, and national idiosyncrasies.
Rules
France’s leaders maintained social equity with laws, tax policies, and social spending that reducedincome disparity and the impact of free markets on public health and welfare.2 France’s tax burden,45% of GDP in 1998, was 3% higher than the European average—and 8% higher than the OECDaverage. An additional burden on employers was the 1999 reduction of the workweek to 35 hours.Unemployment and retirement benefits were generous.
The country was also known for its strong unions.3 A French manager pointed out, “In France,one still finds a certain dose of antagonism between employees and management.” The politicalparty of the union that was strongest at the F. S. George V garnered nearly 10% of votes in the firstround of the 2002 French presidential election with the rallying cry, “Employees fight the bosses!”
Four Seasons management was not unfamiliar with labor-oriented government policy. Youngexplained that “Canada has many attributes of a welfare state, so our Canadian roots made it easierto deal with such a context.” Corinthios added, “If you look at the challenges of operating in France,they have labor laws that are restrictive, but not prohibitive. The laws are not the same as, forexample, in Chicago. You just need to be more informed about them.” The laws did give employerssome flexibility, allowing them to work someone a little more during peak business periods and lessduring a lull. A housekeeper, for example, might work 40-hour weeks in the summer in exchange fora few 30-hour weeks in the late fall. Furthermore, French employers could hire 10% to 15% of staff ona “temporary,” seasonal basis.
A particularly tricky area of labor management in France involved terminations. “Wherever weoperate in the world,” a Four Seasons manager explained, “we do not fire at will. There is dueprocess. There is no surprise. There is counseling. So, Paris isn’t that different, except to have thetermination stick is more challenging because you really need a very, very good cause and todocument everything carefully. If you have one gap in the documentation, you will have to rehire theterminated employee.”
National and Organizational Culture
Geert Hofstede’s seminal work, Culture’s Consequences,4 indicated a great disparity between NorthAmerican (U.S. and Canadian) national culture and that of France.5 Four Seasons managers agreed;Corinthios identified attitudes on performance evaluation as one difference:
European and Middle Eastern managers have a hard time sitting across from people theysupervise and talking about their weaknesses. The culture is not confrontational. It is morecongenial and positive. It is very important to save face and preserve the dignity of the personbeing reviewed. Some Four Seasons managers using standard forms might even delete certainsections or questions or reprogram them in different languages.
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For Didier Le Calvez, general manager of the F. S. George V and recently appointed regional vicepresident, another significant difference was the degree to which middle and front-line managers feltaccountable. “The greatest challenge in France is to get managers to take accountability for decisionsand policies,” he said. “In the French hierarchical system, there is a strong tendency to refer things tothe boss.”
Le Calvez was also surprised by managers’ poor understanding of human resource issues. InFrance, when a manager had a problem with an employee, the issue generally was referred to thehuman resources department. “We, at Four Seasons, require that operating managers be present, dealwith the issue, and lead the discussion.”
Saint Thomas the Skeptic
When reflecting on their experiences with employees in France, several Four Seasons managersmentioned Saint Thomas (“doubting Thomas”). “They must see it to believe it,” Le Calvez explained.“They do not take things at face value. They also tend to wait on the sidelines—once they see thatsomething works, they come out of their shells and follow the movement.” A Four Seasons managercontinued:
Most of the workforce in France did not know what Four Seasons was all about. Forexample, they did not think we were serious about the Golden Rule. They thought it was waytoo American. Initially, there were some eyebrows raised. Because of this skepticism, when weentered France, we came on our tiptoes, without wanting to give anyone a lecture. I think howwe came in was almost as important as what we did.
More Differences
For several Four Seasons managers, working in France required a “bigger cultural adjustment”than had been necessary in other countries. “In France, I always knew that I would be a foreigner,” amanager explained. “It took me a while to adjust to the French way.” “There is simply an incrediblepride in being French,” added another. “The French have a very emotional way of doing things,” anF. S. George V manager explained. “This can be good and bad. The good side is that they can be veryjoyous and engaging. On the bad side, sometimes the French temper lashes out.”
According to Four Seasons managers, what was referred to in the cultural research literature asthe French “logic of honor”6 was strong. While it would be degrading to be “in the service of” (auservice de) anybody, especially the boss, it was honorable to “give service” (rendre service), withmagnanimity, if asked to do so with due ceremony. In this context, management required a greatdeal of tact and judgment.
Managing differing perceptions of time could also be a challenge for North Americans in France.North Americans have been characterized by cultural researchers as having a “monochronic” culturebased on a high degree of scheduling and an elaborate code of behavior built around promptness inmeeting obligations and appointments.7 In contrast, the French were said to be “polychronic,”valuing human relationships and interactions over arbitrary schedules and appointments. Thesedifferences created predictable patterns, summarized in Exhibit 8.
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Cultural Renovation at the F.S. George V
Young noted:
When we explored options for refashioning the George V into a Four Seasons hotel werealized that without being able to start from scratch, the task would be Herculean. Theexisting culture was inconsistent with ours. In a North American environment you can decidewhom to keep after an acquisition at a cost you can determine in advance on the basis of caselaw. In France, the only certainty is that you cannot replace the employees. You are acquiringthe entity as a going concern. Unless you do certain things, you simply inherit the employees,including their legal rights based on prior service.
To be able to reduce headcount, by law an enterprise had to plan to be closed for over 18 months.Because the F.S. George V owner wanted the renovation to be complete in 12 months, staff wereguaranteed a position with Four Seasons unless they chose to leave.8 “Many of the best employeeseasily found other jobs, while the most disruptive were still there when the hotel reopened,” Youngsaid. “The number of people we really didn’t want was somewhere in the region of 40 out of 300coming back on reopening.”
Young provided an example of the cultural problems Four Seasons found: “During the duediligence process the former general manager went to lunch with one of our senior staff. Even thoughguests were waiting, the maitre d’ immediately tried to escort the general manager and his party tothe general manager’s customary table. At Four Seasons this is seen as an abuse of privilege. For us,‘the guest always comes first.’”
Fortunately, in taking over The Pierre in New York in 1981, Four Seasons had been through asimilar process. As a senior Four Seasons manager recalled, “Shortly after we bought The Pierre, abell captain lamented that the times of the big steamer trunks were over. The staff had not adjusted tojet travel, despite its prevalence for two decades. This is the same kind of recalibration we had to doat the George V.”
Apples and Oranges
The Four Seasons had developed a specific approach to cultural transformation in acquiredproperties with existing staffing. Young elaborated:
If we can achieve a critical mass of individuals among the workforce committed to doingthings differently, to meeting our standards, that critical mass overcomes the resistance ofwhat becomes a diminishing old guard. Progressively, that old guard loses some of its power.If one rotten apple can ruin the barrel, then you have to seed the organization with orangesthat cannot be spoiled by the apples. As a result, a departing old-guard employee is verycarefully replaced. Concurrently, individuals with the right culture and attitude are promoted.That creates a new culture, bit by bit by bit. At the F. S. George V, we also appealed to thenational pride of our staff to help us restore a French landmark—restore the pride of France.
“Un Boss Franco-Français”
To effect this cultural change, Four Seasons chose Le Calvez to be general manager. Described asboth demanding and “Franco-Français,”9 an expression describing someone or something“unequivocably French,” Le Calvez brought extensive Four Seasons and North American experience.
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Prior to opening the Regent Hotel in Singapore, he had spent 25 years outside France, including 11years at The Pierre in New York.
Young commented on the choice of Le Calvez: “The choice of senior leadership is absolutelycritical. Adherence to our values and operational goals has to be extremely strong. Hotel openingsrequire a lot of patience and tolerance because results are likely to be less positive as you managethrough periods of major change.”
“The hotel’s culture is embodied in the general manager,” an F.S. George V manager noted. In acountry where people typically referred to each other as Monsieur and Madame with their last name,Le Calvez encouraged the use of the first name. “It is more direct, relaxed, and straightforward. Itrepresents the kind of relationship I want to have with my staff,” he stated.
The Task Force
To help Le Calvez and his team “Four Seasonize” the F. S. George V staff and ensure a smoothopening, Four Seasons assigned a 35-person task force, as it did for every new property. The taskforce, composed of experienced Four Seasons managers and staff, reflected the operating needs ofeach property. For example, if an experienced room service manager had already transferred to theopening property, those skills would not be brought in via the task force. A manager noted:
The task force helps establish norms and helps people understand how Four Seasons doesthings. Members listen for problems and innuendoes, communicate the right information toall, and squash rumors, especially when there are cultural sensitivities. The task force alsohelps physically getting the property up and running. Finally, being part of the task forceexposes managers—who may one day become general managers—to the process of opening ahotel.
“The task force is truly a human resource, as well as strong symbol,” a manager explained. “Theapproach supports allegiance to the firm and not just one property.” Most task force members, whotypically stayed three weeks for an opening, stayed seven to eight weeks at the F. S. George V.
Strong Tides
After working 25 years abroad, Le Calvez admitted that he was hesitant to return to work inFrance in light of the tension he sensed between labor and management. However, he wasencouraged by what he had seen at The Pierre, where Four Seasons managers noted that they hadfostered a dialogue with the New York hospitality industry union. Le Calvez felt he could do thesame in Paris: “When I arrived I told the unions that I did not think that we would need them, butsince the law said we had to have them, I said ‘let’s work together.’ I do not want social tensions. Ofcourse, this is not unique to me, it is Four Seasons’ approach. We have to be pragmatic. So wesignaled our commitment to a good environment.”
Le Calvez communicated this commitment by openly discussing the 35-hour workweek, the FourSeasons retirement plan, and the time and attendance system, designed to make sure that staff wouldnot work more than required. At the outset of negotiations, in preparation for the reopening, LeCalvez took the representatives of the various unions to lunch. As work progressed, he organizedtours of the site so that representatives could see what was being done and “become excited” aboutthe hotel. Managers stated that the unions were not accustomed to such an inclusive approach inFrance.
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Young felt that dealing with unions in France was easier than in New York: “In France, you aredealing with an institution backed by stringent, but predictable, laws. In the United States, you aredealing with individuals in leadership who can be much more volatile and egocentric.”
Young referred, again, to the Four Seasons experience with The Pierre:
In New York, we redesigned working spaces, and trained, and trained, and trained staff.But we also burned out a couple of managers. The old culture either wears you down or youwear it down. In an environment with strong labor laws, management sometimes gives up theright to manage. At some point managers stop swimming against the tide. If that continueslong enough, the ability to manage effectively is lost. The precedents in a hotel are those thatthe prior managers have permitted. If the right to manage has been given up, standards aredepressed, productivity and margins decrease, and eventually you have a bad business.Regulars are treated well, but many guests are not. Reversing this process requires enormousmanagement energy. It is very wearing to swim against a strong tide. You are makingdecisions that you believe reasonable and facing reactions that you believe unreasonable.
The 35-hour Workweek
Four Seasons managers implemented the 35-hour workweek at the F. S. George V in order to meetthe letter and spirit of French law. “When we hire staff from other hotels they are always surprisedthat we obey the law,” an F. S. George V manager noted. “They worked more elsewhere.”
A 35-hour workweek yielded 1,820 workable hours per full-time staff equivalent. But since theFrench had more holidays and vacation, an employee provided 1,500 to 1,600 workable hours,compared with approximately 1,912 hours in the United States for a full-time equivalent. A managercommented, “We did not really understand the impact of the 35-hour workweek. Each of our 80managers has to have two consecutive days off a week, and each of the staff can work 214 days ayear. Not 215. Not 213. But 214.”
In 2002, 620 staff covered 250 rooms, or 2.5 staff per room. On average, Four Seasons hotels had1.6 employees per room. Depending on food and banquet operations, that average could rise or fallsignificantly. (Exhibit 9 shows employees-to-room ratios at selected Four Seasons properties.)Young felt that, compared with U.S. norms, labor laws explained about 15% of the need for increasedstaff ratios in Paris; vacations and holidays, 10%; with the balance explained by other factorsincluding logistics of the operation, e.g., a historic building. Corinthios elaborated:
In Paris, six palaces compete for the same clients. It is a more formal operation. Guestexpectations are very high, as is the level of leisure business (which requires higher staffing).People stay four to six days and use the concierge extensively. The concierge staffing at the F.S. George V is as big as anything we have in the chain. Then there is more emphasis on foodand beverage. We have a fabulous chef and more staff in the kitchen for both the restaurantand room service—expectations of service in the gastronomic restaurant are very high.
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Running the F. S. George V
Recruitment and Selection
Four Seasons wanted to be recognized as the best employer in each of its locations. Salaries (whichwere among the top three for hotels) were advertised in help wanted ads, a first in the industry inParis, according to F. S. George V managers.
At the F. S. George V, as across the firm, every potential employee was interviewed four times, thelast interview being with the general manager. According to one executive, “In the selection process,we try to look deep inside the applicant. I learned about the importance of service from myparents—did this potential employee learn it from hers?” “What matters is attitude, attitude,attitude,” Corinthios explained. “All around the world it is the same. Without the right attitude, theycannot adapt.” Another manager added, “What we need is people who can adapt, either to guestsfrom all over the world or to operating in a variety of countries.” One of his colleagues elaborated onthe importance of hiring for attitude, and its challenges:
You would think that you would have a lot of people with great experience because thereare so many palace hotels in Paris. But because we hire for attitude, we rarely hire from theother palaces. We hire individuals who are still “open” and tend to be much younger thanusual for palace hotels. Then we bet on training. Of course, it takes much longer to train forskills when people do not have them. We look for people persons, who are welcoming and putothers at ease, who want to please, are professional and sincerely friendly, flexible, smiley, andpositive. At the F. S. George V people apply for jobs because they have friends who work here.
To spread the culture and “de-demonize” the United States, the new F. S. George V managementrecruited staff with prior Four Seasons and/or U.S. experience to serve as ambassadors. A managernoted, “Staff with U.S. experience share with other staff what the United States is about and that it isnot the terrible place some French people make it out to be.” About 40 individuals had prior NorthAmerican and international experience.
“Anglo-Saxon” Recognition, Measurement, and Benefits
Le Calvez and his team launched an employee-of-the-month and employee-of-the-year program.“This had been controversial at Disney. People said it could not be done in France, but we managedto do it quite successfully. It all depends how it is presented,” Le Calvez noted. “We explained that itwould recognize those who perform. Colleagues can tell who is good at their job.”
Le Calvez used the same spirit to introduce annual evaluations, uncommon in France:
People said it would be unpopular, but the system seems to work. We told the staff that itwould be an opportunity for open and constructive dialogue so that employees can know at alltimes where they stand. This allows them to adapt when need be. We made clear that therewould be no favoritism, but rather that this would be a meritocracy. Here your work speaksfor itself. The idea that your work is what matters could be construed as very Anglo Saxon!
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Implementing the “Golden Rule”
F. S. George V’s human resource director commented: “Cooks, before joining Four Seasons, usedto have very long days, starting in the morning to prepare for lunch, having a break during theafternoon, and coming back to prepare dinner. Today, they work either a morning or afternoon shift,enabling a better organization of their personal lives.”
“All these gestures take time to work,” Le Calvez summarized. “At first, employees do not thinkwe mean it. Some new hires think it’s artificial or fake, but after a few months they let their guarddown when they realize we mean what we say.”
Managers believed that the effect of Four Seasons’ human resource practices was reflected incustomer satisfaction. Le Calvez noted, “We offer friendly, very personal service. We have a veryyoung and dynamic brigade with an average age of 26, spanning 46 different nationalities.”
Communication
To promote communication and problem solving, the F. S. George V management implemented a“direct line”: once a month the general manager met with employees, supervisors, and managers ingroups of 30 (employees met separately from supervisors—because subordinates in France did notfeel comfortable speaking up in front of superiors). The groups met for three consecutive months sothat issues raised could be addressed, with results reported to the group. Managers believed that theF. S. George V was the only palace hotel in France with such a communication process.
Every morning the top management team gathered to go over glitches—things that may havegone wrong the day before and the steps that had been, or were being taken, to address the problem.“Admitting what went wrong is not in the French culture,” a French Four Seasons managerexplained. “But the meetings are usually very constructive.”
Finally, about three times a year, Le Calvez and his team hosted an open door event invitingemployees and their families to spend time at the hotel. “This is to break down barriers,” heexplained. “We take people around the hotel, into the back corridors. Try to remind people of anotion that is unfortunately being lost—that of the plaisir du travail—or enjoying one’s work.Furthermore, we celebrate achievement. Good property rankings, for example, are recognized withspecial team celebrations.”
The property also cultivated external communication with the press in a way that was culturallysensitive. Le Calvez and his team felt that they had been very open and responsive to the press(which they stated was unusual in France) and that as a result “not a single negative article had beenwritten about Four Seasons Hotel George V since its opening.” A colleague added, “The pressappreciated they were dealing with locals: it was not like Disney where everyone was American.”
Culinary Coup d’Etat
In a diversion from Four Seasons practice, a non-Four Seasons executive chef was hired, PhilippeLegendre, from the world-famous Parisian restaurant Taillevent. “In France, having a serious chefand serious food is important,” noted the F.S. George V assistant food and beverage director. “Youcannot be a palace hotel without that.”
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“Didier [Le Calvez] came to get me through a common friend,” Legendre explained. Legendresaid he accepted Four Seasons’ offer because “there was something exciting about being part ofopening a hotel. “ He also liked Four Seasons’ language, which he described as “optimistic” and“about creating possibilities.” Legendre felt that Four Seasons’ real strength was around guest andemployee relationship management, which “is not something that we are that good at in France, orplace particular emphasis on. We have a lot to learn in the social domain. Everything at Four Seasonsis geared towards the needs of the guest. At first it was hard, especially the training. Perhaps becausein France, we think we know everything.” He continued: “After three years, I might not talk the FourSeasons talk, I might not use the same words, but I have the same view and adhere to the samesystem.”
Despite Legendre’s success (earning two Michelin stars), a colleague added, “Bringing in such anexecutive chef was problematic. The challenge is that with this chef you have someone withextraordinary talent, but who must still adjust to the way service is delivered at Four Seasons.”Legendre described a situation illustrating miscommunication and cultural differences, whichrequired tremendous patience on the part of the restaurant, guests, and management:
Recently a man ordered an omelet and his wife ordered scrambled eggs. The man returnedthe omelet because he decided he wanted scrambled eggs. We made them. Then he sent themback because they did not meet his expectations. Of course, we realize that our oeufs brouillésare different from scrambled eggs, which don’t contain cream. Because we are Four Seasonswe cooked the eggs as he wanted them, like American scrambled eggs, and didn’t charge forthem. But cooking is about emotion—if you want to please someone, you have to do it withyour heart. We live differently in France.
Results: A Cultural Cocktail
The F. S. George V was, in effect, a cultural cocktail. Le Calvez explained, “The F. S. George V isnot only a French hotel—it is French, but it is also very international. We want to be different from theother palaces that are oh so very French. We want to project the image of a modern France, one thatdoes not have to be dusty. We want to be a symbol of a France that is in movement, a EuropeanFrance, a France that stands for integration and equality.”
The cultural cocktail also contained some elements that were unusual in France. At the time of theopening, journalists asked about the “American” smiling culture, which was referred to in France as“la culture Mickey Mouse.” Le Calvez replied, “If you tell me that being American is being friendlyand pleasant, that is fine by me. People tell me everyone smiles at the Four Seasons George V.”
The spectacular flowers in the lobby of the F. S. George V (a single urn once contained 1,000 roses)were both very French and extremely international. “Paris is a city of fashion and culture, artistic andinnovative,” Le Calvez explained. “That is why, for example, we have the flowers we do. We can dothat here.” However, the flowers were designed by a young American. Another departure fromFrench standard was the decision to hire women as concierges, and men in housekeeping. Managersviewed these decisions as revolutionary steps in Paris.
Service Quality
Richey summarized the results of the first F. S. George V service quality audit in October 2000:
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This audit occurred less than one year after opening, and it takes at least a year to get thingsworked out. There were three things we talked to Four Seasons’ executives about, mostlyrelated to employee attitude. First, the staff had an inability to apologize or empathize. I thinkthat could be construed as typically European, and especially French. Second, the team had avery tough time doing anything that could be described as selling. This is also typicallyEuropean. For example: say your glass is empty at the bar. In Paris, they may not ask you ifyou want another drink. Third, the staff were rules and policy oriented. If something wentwrong, they would refer to the manual instead of focusing on satisfying the guest.
Things had changed considerably by Richey’s second audit in August 2001, when “they beat thecompetitive market set.” The scores showed a significant improvement, raising the property to FourSeasons’ system average.
More good news came in July 2002 with the results of an Employee Opinion Survey, in which 95%of employees participated. The survey yielded an overall rating of 4.02 out of 5. The statements thatranked the highest were: “I am proud to work for Four Seasons Hotels and Resorts” (4.65) and “Iwould want to work here again” (4.61).
The property also received several industry awards including Andrew Harper’s Hideaway Report2001 and 2002, World’s Best Hotels and Resorts, Travel & Leisure Readers’ Choice Awards 2001 #2Best Hotel in Europe, and #5 World’s Best Hotel Spa.
803-069 -15-
Exhibit 1 Overview of Property Locations
The Americas Europe, Middle East Asia/Pacific
Atlanta Maui Amman Bali at Jimbaran BayAustin Nevis Berlin Bali at SayanAviara, North San Diego New York Cairo Bangkok (The Regent)Boston New York (The Pierre) Dublin Chiang Mail (The Regent)Buenos Aires Newport Beach Istanbul Jakarta (The Regent)Caracas Palm Beach Lisbon Kuala Lumpur (The Regent)Carmelo, Uruguay Philadelphia London MaldivesChicago Punta Mita, México London, Canary Wharf ShanghaiChicago (The Ritz-Carlton) San Francisco Milan SingaporeDallas Santa Barbara Paris Singapore (The Regent)Hawaii Scottsdale Prague SydneyHouston Seattle Sharm El Sheikh Taipei (Grand Formosa Regent)Las Vegas Toronto Tokyo at Chinzan-soLos Angeles Vancouver Tokyo at MarunouchiLos Angeles (the Regent Beverly Wilshire) Washington, D.C.
Source: Four Seasons Web site, <http://www.fourseasons.com/find_a_hotel.html>.
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Exhibit 2 Summary Financial Data
Consolidated Balance Sheets
(in thousands of dollars) Years Ended December 312001 2000
ASSETS
Current assets:Cash and cash equivalents $210,421 $218,100Receivables 78,450 94,265Inventory 3,074 2,806Prepaid expenses 2,492 1,499
294,437 316,670
Long-term receivables 201,453 167,214Investments in hotel partnerships and corporations 141,005 172,579Fixed assets 50,715 46,342Investment in management contracts 201,460 189,171Investment in trademarks and trade names 33,784 34,829Future income tax assets 17,745 21,771Other assets 39,782 35,821
$980,381 $984,397
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:Accounts payable and accrued liabilities $ 50,813 $ 71,345Long-term obligations due within one year 1,188 1,152
Source: Four Seasons Web site, <http://www.fourseasons.com/investor/annual_reports/2001/cfs_cso.htm>.
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Exhibit 2 (continued)
Consolidated Statement of Operations
(in thousands of dollars except per-share amounts) Years Ended December 312001 2000
CONSOLIDATED REVENUES $303,106 $347,507
Management OperationsRevenues $160,672 $185,294General and administrative expenses (65,416) (59,532)
95,256 125,762
Ownership OperationsRevenues 147,500 161,061Distributions from hotel investments 1,510 9,047Expenses:
Cost of sales and expenses (152,663) (148,590)Fees to Management Operations (6,576) (7,895)
(10,229) 13,623
Earnings before other operating items 85,027 139,385Depreciation and amortization (16,242) (14,028)Other income, net 30,698 8,669
Earnings from operations 99,483 134,026Interest income, net 6,740 4,190
Earnings before income taxes 106,223 138,216Income tax recovery (expense):
Current (15,711) (33,412)Future (3,087) 1,796Reduction of future income tax assets (939) (3,526)
(19,737) (35,142)
Net earnings $ 86,486 $103,074
Earnings per share $ 2.48 $ 2.98
Diluted earnings per share $ 2.27 $ 2.63
Source: Four Seasons Web site, <http://www.fourseasons.com/investor/annual_reports/2001/cfs_cbs.htm>.
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Exhibit 3 Four Seasons Reporting Structure
RegionalVice Presidents
(13)
RegionalVice Presidents
(13)
HotelGeneral
Managers
HotelGeneral
Managers
Area
Dire
ctor
of F
inan
ceR
egio
nal H
uman
Res
ourc
e D
irect
or
Supporting
Reg
iona
lM
arke
ting
Dire
ctor
RegionalVice Presidents
(13)
RegionalVice Presidents
(13)
HotelGeneral
Managers
HotelGeneral
Managers
RegionalVice Presidents
(13)
RegionalVice Presidents
(13)
HotelGeneral
Managers
HotelGeneral
Managers
Area
Dire
ctor
of F
inan
ceR
egio
nal H
uman
Res
ourc
e D
irect
or
Supporting
Reg
iona
lM
arke
ting
Dire
ctor
Source: Company data.
Notes: A general manager typically reported to a Regional Vice President (RVP) selected from the ranks of senior GeneralManagers. The criteria for promotion to RVP included breadth of experience (various geographic locations;city/resort/opening hotels), business skills, and capability to represent the standards and culture of Four Seasons.Each RVP continued to operate as General Manager of his or her base hotel, while acting as the first recourse foradvice, guidance, policy interpretation, people, product, and owner-relations issues. A region normally comprisedthe base hotel/resort plus two or three hotels within reasonable traveling distance of the RVP’s base hotel.
Exhibit 4 The Seven Four Seasons “Service Culture Standards”
1. SMILE Employees will actively greet guests, SMILE, and speak clearly in a friendlymanner.
2. EYE Employees will make EYE contact, even in passing, with an acknowledgment.
3. RECOGNITION All staff will create a sense of RECOGNITION by using the guest’s name, whenknown, in a natural and discreet manner.
4. VOICE Staff will speak to guests in an attentive, natural, and courteous manner,avoiding pretension, and in a clear VOICE.
5. INFORMED All guest contact staff will be well INFORMED about their hotel and theirproduct, will take ownership of simple requests, and will not refer guestselsewhere.
6. CLEAN Staff will always appear CLEAN, crisp, well groomed, and well fitted.
7. EVERYONE EVERYONE, everywhere, all the time, show their care for our guests.
Source: Company data.
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Exhibit 5 Sample Core Standards
RESERVATIONS
Mission: To provide crisp, knowledgeable, and friendly service, sensitive to the guest’s timeand dedication to finding the most suitable accommodation.
! Phone service will be highly efficient, including: answered before the fourth ring; no holdlonger than 15 seconds; or, in case of longer holds, call-backs offered, then provided in lessthan 3 minutes.
! After establishing the reason for the guest visit, reservationist automatically describes theguest room colorfully, attempting to have the guest picture himself or herself in the room.
HOTEL ARRIVAL
Mission: To make all guests feel welcome as they approach, and assured that details are welltended; to provide a speedy, discreet, and hassle-free arrival for business travelers; to provide acomforting and luxurious arrival for leisure travelers.
! The doorman (or first-contact employee) will actively greet guests, smile, make eye contact,and speak clearly in a friendly manner.
! The staff will be aware of arriving vehicles and will move toward them, opening doors within30 seconds.
! Guests will be welcomed at the curbside with the words “welcome” and “Four Seasons” (orhotel name), and given directions to the reception desk.
! No guest will wait longer than 60 seconds in line at the reception desk.
MESSAGES AND PAGING
Mission: To make guests feel that their calls are important, urgent, and require completeaccuracy.
! Phone service will be highly efficient, including: answered before the fourth ring; no longerthan 15 seconds.
! Callers requesting guest room extensions between 1 a.m.–6 a.m. will be advised of the localtime and offered the option of leaving a message or putting the call through.
! Unanswered guest room phones will be picked up within 5 rings, or 20 seconds.
! Guests will be offered the option of voice mail; they will not automatically be routed to voicemail OR they will have a clear option to return to the operator.
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Exhibit 5 (continued)
GUEST ROOM EVENING SERVICE
Mission: To create a sense of maximum comfort and relaxation. When meeting guests, toprovide a sense of respect and discretion.
! Guest clothing that is on the bed or floor will be neatly folded and placed on the bed or chair;guest clothing left on other furniture will be neatly folded and left in place; shoes will bepaired.
! Newspapers and periodicals will be neatly stacked and left on a table or table shelf in plainview; guest personal papers will not be disturbed in any way.
! Guest toiletries will be neatly arranged on a clean, flat cloth.
Source: Company data.
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Exhibit 6 Four Seasons Goals, Beliefs, and Principles
Who We Are: We have chosen to specialize within the hospitality industry by offering onlyexperiences of exceptional quality. Our objective is to be recognized as the company that manages thefinest hotels, resorts, residence clubs, and other residential projects wherever we locate. We createproperties of enduring value using superior design and finishes, and support them with a deeplyinstilled ethic of personal service. Doing so allows Four Seasons to satisfy the needs and tastes of ourdiscriminating customers, to maintain our position as the world’s premier luxury hospitalitycompany.
What We Believe: Our greatest asset, and the key to our success, is our people. We believe thateach of us needs a sense of dignity, pride, and satisfaction in what we do. Because satisfying ourguests depends on the united efforts of many, we are most effective when we work togethercooperatively, respecting each other’s contribution and importance.
How We Behave: We demonstrate our beliefs most meaningfully in the way we treat eachother and by the example we set for one another. In all our interactions with our guests, businessassociates, and colleagues, we seek to deal with others as we would have them deal with us.
How We Succeed: We succeed when every decision is based on a clear understanding of andbelief in what we do and when we couple this conviction with sound financial planning. We expect toachieve a fair and reasonable profit to ensure the prosperity of the company, and to offer long-termbenefits to our hotel owners, our shareholders, our customers, and our employees.
Source: Company data.
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Exhibit 7 Comparative Data on Parisian Palaces
PROPERTY CONSTRUCTION/STYLE
CAPACITY
(ROOMS
& SUITES) AMENITIES
PRICE
(U.S.$, PER
SINGLE ROOM) OWNER LESSEE/OPERATOR
Bristol Built in 1829Louis XV–XVI style
180 1 restaurant: Le Bristol1 interior garden1 swimming pool1 fitness center1 beauty salon
480–600 Société Oetkera (1978) Independent
Crillon Built in the 18th centuryLouis XV–XVI style
152 2 restaurants: L’Ambassadeurand L’Obelix
1 fitness centerGuerlain Beauty Institute
460–550 Groupe Hôtels Concordeb
(1907)Groupe Hôtels
Concordeb
(1907)
Four SeasonsHotel
George V Paris
Built in 1928Art Déco style
245 1 restaurant: Le Cinq1 swimming pool1 fitness center1 beauty salon
670 Prince Al Waleed Bin Talalc
(1996)Four Seasons Hotels and
Resorts (2000)
Meurice Built in the 18th centuryLouis XV–XVI style
161 1 restaurant: Le Meurice1 fitness centerCaudalie Beauty Institute
470–550 The Sultan of Brunei (1997) The Dorchester Groupd
(2001)
Plaza Athenée Built in 1889Belle Epoque style
144 2 restaurants: Le Relais Plaza 490–508 The Sultan of Brunei (1997) The Dorchester Groupd
Sources: Brian D. Egger et al., “Four Seasons Hotels and Resorts,” Crédit Suisse First Boston, April 5, 2002, p. 21. Also the following Web sites: <http://meuricehotel.com>, <http://www.hotel-bristol.com>, <http://www.ritz.com>, <http://www.fourseasons.com/paris/vacations/index.html>, <http://www.plaza-athenee-paris.com>, <http://www.crillon.com>, accessed June 2002.
aThe Oetker Group was a German agribusiness group that owned luxury hotels (including the Cap Eden Roc in Antibes, France; the Park Hotel in Vitznau, Switzerland; the Brenner's Park Hotel in BadenBaden, Germany; and the Château du Domaine Saint-Martin in Vence, France).
bGroupe Hôtels Concorde was created in 1973 to regroup the luxury hotels such as the Crillon, the Lutetia, and the Hotel Concorde Saint-Lazare (all in Paris) owned by La Société du Louvre.cAl Waleed Bin Talal owned 21.9% of Four Seasons’ stock. Investments by Prince Al Waleed in Four Seasons’ properties included F. S. George V and Riyadh (100%); London (majority); Cairo, Amman,Alexandria, Sharm El Sheikh and Beirut (unspecified); and Aviara (minority).dThe Dorchester Group, a subsidiary of the Brunei Investment Agency, was established in 1996 as an independent U.K. registered company to manage luxury hotels, including The Dorchester in London,The Beverly Hills Hotel California, and the Hotel Meurice in Paris.
Four Seasons Goes to Paris: "53 Properties, 24 Countries, 1 Philosophy" 803-069
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Exhibit 8 Predictable Patterns of Monochronic and Polychronic Cultures
Monochronic People (Americans) Polychronic People (French)
Do one thing at a time. Do many things at once.
Concentrate on the job. Can be easily distracted and manage interruptions well.
Take time commitments (deadlines, schedules)seriously.
Consider an objective to be achieved, if possible.
Are low-context and need information. Are high-context and already have information.
Are committed to the job. Are committed to people and human relationships.
Adhere religiously to plans. Change plans often and easily.
Are concerned about not disturbing others; followrules of privacy and consideration.
Are more concerned with those who are closelyrelated (family, friends, close business associates)than with privacy.
Show great respect for private property;seldom borrow or lend.
Borrow and lend things often and easily.
Emphasize promptness. Base promptness on the relationship.
Are accustomed to short-term relationships. Have strong tendency to build lifetime relationships.
Source: Adapted from Edward T. Hall, “Understanding Cultural Differences: Germans, French, and Americans” (Yarmouth,ME: Intercultural Press, 1990).
Exhibit 9 Employees-to-Room Ratios at Selected Four Seasons Properties
PropertyEmployees-to-Rooms Ratio
Four Seasons worldwide average 1.6
The Pierre New York 2.3
Four Seasons Hotel New York 1.6
Four Seasons Hotel George V Paris 2.5
Four Seasons Hotel Berlin 0.9
Four Seasons Hotel London 1.2
Four Seasons Hotel Canary Wharf, London 1.4
Four Seasons Hotel Milano 2.2
Source: Company data.
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Endnotes
1 Interior Design, March 2000, p. S24.
2 For example, maternity leave for a salaried employee’s first child was 6 weeks of prenatal leave and 10 weeks ofpaid leave after birth; for a third child it was 8 weeks off before and 18 weeks after birth.
3 As of 2002, the Communist-controlled labor union (Confédération Générale du Travail or CGT) had nearly 2.4million members (claimed); the independent labor union (Force Ouvrière) had 1 million members (est.); theindependent white-collar union (Confédération Générale des Cadres) had 340,000 members (claimed); the Socialist-leaning labor union (Confédération Française Democratique du Travail or CFDT) had about 800,000 members (est.).Source: CIA Web site, <http://www.cia.gov/cia/ publications/factbook/geos/fr.html>, accessed June 10, 2002.
4 Hofstede’s work was based on a survey, conducted by questionnaire, of IBM employees in 50 differentcountries. See Geert Hofstede, Culture’s Consequences: International Differences in Work-related Values (ThousandOaks, CA: Sage, 1982).
5 Hofstede’s work has been criticized for the construction of the dimensions along which cultures differ. Forexample, D. Hickson comments (in "The ASQ Years Then and Now through the Eyes of a Euro-Brit,"Administrative Science Quarterly, 41(2): 217–228) that Hofstede had “frail data, but robust concepts.” However,there is general agreement with the principle that cultures do differ. Further, Hofstede’s work and that of otherscholars indicate that the differences between North American and French organizational culture are large.
6 Philippe d’Iribarre, “The usefulness of an ethnographic approach to the international comparison oforganization,” International Studies of Management and Organization, 18(4): 32.
7 Brian Van der Horst, “Edward T. Hall—A Great-Grandfather of NLP,” <http://www.cs.ucr.edu/gnick/bvdh/print_ edward_t_hall_great_.htm>, accessed April 20, 2002. The article reviews E. Hall, The Silent Language (NewYork: Doubleday, 1959).
8 One alternative was to give the staff a significant enough severance package to encourage them to go.However, as Young explained, “the government deplores that approach.”
9 Usually used to describe a meal—say a first course of fromage de tête (pig's head set in jelly) or bouillabaisse (fishsoup), followed by a main course of blanquette de veau (veal stew with white sauce) and rounded off with aplateau de fromage (cheese platter) or tarte aux pommes (apple tart).
